TLDR:
- Conventional wisdom often leads entrepreneurs to create generic and unimpressive presentations, hindering their chances of receiving venture capital funding.
- Using pitch templates can limit the potential of a presentation by removing creative freedom and making it blend in with the crowd.
- Following outdated advice from books like “Pitch Anything” can also be detrimental, as the market has adapted and new strategies are needed to establish exclusivity.
- Venture capitalists often give advice that benefits them rather than entrepreneurs, so it’s important to focus on selling the story and opportunity rather than trying to present raw data.
Raising venture capital is a difficult task, with only 0.7% of companies receiving the funding they seek. To improve their chances, entrepreneurs often turn to conventional wisdom for guidance. However, this article argues that using conventional wisdom can hinder their success instead. The author highlights three sources of conventional wisdom that entrepreneurs should approach critically: pitch templates, advice from books like “Pitch Anything,” and advice from venture capitalists.
Using pitch templates, which have been popularized by industry giants like YC and Sequoia Capital, can limit the potential of a presentation. While pitch templates ensure that all necessary information is covered, they remove creative freedom and make presentations blend in with others. To stand out and have a higher chance of success, entrepreneurs need to break away from the constraints of pitch templates and craft compelling narratives for their businesses.
Books like “Pitch Anything” have been influential in shaping pitching theory, but the market has adapted since their publication. Following the advice from these books may no longer be effective in establishing exclusivity and attracting venture capital. Instead, entrepreneurs need to use new strategies that are adapted to the current fundraising environment. For example, creating momentum and using it to raise funds quickly can help differentiate a company and generate interest from investors.
Lastly, the article argues that entrepreneurs should approach advice from venture capitalists critically. VCs often provide advice that benefits them rather than the entrepreneur. For example, VCs may encourage entrepreneurs to continuously add more information to their pitch decks. However, this can decrease the chances of raising capital. Instead, entrepreneurs should focus on selling their story and the opportunity rather than presenting raw data.
In conclusion, entrepreneurs should be cautious when relying on conventional wisdom for guidance in raising venture capital. Pitch templates, outdated advice from books, and advice from venture capitalists may actually hinder their chances of success. Instead, entrepreneurs should strive to create unique and compelling presentations that differentiate their businesses and focus on selling their story and the opportunity.
